The free trade agreement with Vietnam cannot be concluded by the EU alone!

17.05.2017

In a closely watched decision that was announced by the European Court of Justice on Tuesday this week (16.05.2017), the court said that any trade deal that includes a non-court dispute settlement system would require ratification by the EU's 38 national and regional authorities.

The Luxembourg-based court's rulings are binding and can't be appealed. This means that EU trade deals must endure a potentially bruising process of ratification by all member states. The decision will stand as key jurisprudence for future trade deals including any deal with Britain.

"It follows that the free trade agreement can, as it stands, only be concluded by the EU and the Member States jointly," the court said in a statement.

For Vietnam, it is now also totally unpredictable, how long the ratification process will take place and when this EU-VN FTA will become effective.